Hershey created a line of upscale chocolates called“Cacao Reserve by Hershey’s.” The companycreated fancy packaging, priced the product atthe high end, and did little mass marketing for itsnew product. Initial sales were disappointinglyslow even though the premium chocolate marketis growing nicely, with brands like Ghirardellifaring well. As a consequence, Hershey almostimmediately (within six months) dropped itsprices and started mass advertising. The productultimately flopped and was discontinued. Usingconcepts in this chapter, why do you think Hersheyfailed in its move into the premium chocolatemarket? Do you think the adjustments were themost appropriate, or could Hershey have takenother steps?
Selective Demand Advertising
Advertising includes communicating with people regarding a product or any service or an idea to sell or promote them. Advertising attracts the consumer towards a specific brand or to a product of a brand which enables them to buy products from that company and hence the company can prosper. Advertising is important both for the company which is in the industry for a longer period of time and even for those who are just starting up with their business. These days it is found that not only the transmission of the messages of a particular brand is done through television or radio but also it is done on the social media platform. Particularly for homegrown brands, social media has become one of the most important platforms which promote the advertising of their products and attract consumer to demand the same. The strategy to have a good advertising background is important for marketing a particular company or a brand.
Primary Demand Advertising
This topic is significant in the professional exams for both undergraduate and graduate courses, especially for
Hershey created a line of upscale chocolates called
“Cacao Reserve by Hershey’s.” The company
created fancy packaging, priced the product at
the high end, and did little mass marketing for its
new product. Initial sales were disappointingly
slow even though the premium chocolate market
is growing nicely, with brands like Ghirardelli
faring well. As a consequence, Hershey almost
immediately (within six months) dropped its
prices and started mass advertising. The product
ultimately flopped and was discontinued. Using
concepts in this chapter, why do you think Hershey
failed in its move into the premium chocolate
market? Do you think the adjustments were the
most appropriate, or could Hershey have taken
other steps?
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